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This one-liner starts a dedicated server hosting (web server) on port 8000 with the contents of current directory on all the interfaces (address 0.0.0.0), not just localhost. If you have "index.html" or "index.htm" files, it will serve those, otherwise it will list the contents of the currently working directory.

It works because python comes with a standard module called SimpleHTTPServer. The -m argument makes python to search for a module named SimpleHTTPServer.py in all the possible system locations (listed in sys.path and $PYTHONPATH shell variable). Once found, it executes it as a script. If you look at the source code of this module, you'll find that this module tests if it's run as a script if __name__ == '__main__', and if it is, it runs the test() method that makes it run a web server in the current directory.